BUSINESS DIGEST: SATURDAY, APRIL 9, 1988

Published: April 9, 1988

MARKETS Stock prices rose to their highest level since the crash in October. The Dow Jones industrial average gained 28.02 points, to 2,090.19, surpassing the previous post-crash high of 2,087.37 set on March 18. Analysts said the surge, most of which came late in the day, was caused by strength in computer stocks, optimism over the Group of Seven currency talks scheduled for next week and a new bout of program trading. For the week, the Dow gained 102.06 points, or 5.1 percent, with much of the lift coming from the 64-point surge on Wednesday. [ Page 37. ] Treasury bond prices climbed in light trading, in a rebound that market participants attributed largely to technical factors. The rally helped cut the yield on the bellwether long-term bond to 8.68 percent, from 8.79 percent the previous day. A good part of the gain was attributed to buying by short-sellers. [ 40. ] The dollar drifted lower while the British pound held its ground, despite cuts in British interest rates. Gold prices nudged upward, with a late New York quote of $449 an ounce, a gain of 15 cents. [ 46. ] Crude oil prices slipped slightly in quiet trading on the belief that the weekend OPEC meeting would do little to raise prices. [ 46. ] COMPANIES I.B.M. will sell licenses allowing copying of its new PS/2 computer line, conceding that the competition is necessary to help the machines become an industry standard. The spread of cheaper ''clone'' machines helps create a demand for I.B.M.-compatible software, making the entire industry more dependent on I.B.M. At the same time, I.B.M. said it would raise the cost of obtaining these licenses by as much as five times its current licensing fees. [ 37. ] The stock of Staley Continental surged above the $32 a share offered by Tate & Lyle. Staley's stock gained $5.875, to $37.375, and was the most active issue on the New York Stock Exchange. Tate & Lyle, a British company, has held a stake in Staley, a maker of corn sweeteners, for some time and has a joint European venture with Staley. Tate & Lyle said it wanted to ''return Staley to basics'' by selling many of the food-distribution operations that Staley has acquired. [ 37. ] Six radio stations will be involved in a $300 million merger of Metropolitan Holdings and Sillerman Acquisition. Metropolitan's holdings include the New York stations WNEW-AM and -FM. [ 39. ] Quaker State received a buyout offer of $695 million, or $26.50 a share, from a group led by a New York investment firm. [ 38. ] West Point-Pepperell suffered one serious blow and narrowly fended off another in its quest for control of J. P. Stevens. [ 48. ] The deadline on a bid for First City Bancorp was extended again as many bondholders continued to balk at the terms. [ 40. ] American Stores said it had received a commitment for $2.5 billion in financing for its battle to acquire Lucky Stores. [ 39. ] THE ECONOMY Consumer borrowing rose by $5.3 billion in February, an annual growth rate of 10.3 percent. The increase was led by a 14.7 percent annualized rise in the amount of money borrowed to buy automobiles. Analysts said this latest sign of consumer confidence was another indication that the economy remained on course for growth of 2 percent or more this year. [ 37. ] INTERNATIONAL British interest rates were cut to their lowest level in a decade to stem the rise of the pound in the currency markets. The pound's strength threatens to make British goods less price-competitive internationally. The Bank of England lowered a key lending rate by three-eighths of a percentage point, to 8 percent. [ 40. ] TODAY'S COLUMNS Windfalls are usually welcome but caution is in order for anyone who comes into a large sum of money. Experts say the first thing to do is nothing. They recommend parking the money in a safe, interest-bearing account for six months or so until a comprehensive strategy can be devised. Your Money. [ 38. ] An organ-imaging method that offers improved detection of cancer and infectious diseases has been developed by a New Jersey company. Patents. [ 38. ]